Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Close with Modest Losses but Miners Gain on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 24 2017
By: Ira Epstein

Life Under Manipulation
By: Theodore Butler

Legendary investor names his top junior resource stock picks right now
By: Peter Spina, President, CEO of GoldSeek.com & SilverSeek.com

Silver Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Deflation must be embraced
By: Alasdair Macleod

Gold’s 47-Year Bull Market
By: Steven Saville

Taxes, Macro Signals, Seasonality, US Stocks and Gold Miners
By: Gary Tanashian

The Key to Profitably Ending Precious Metals Price Suppression And Other Markets Manipulation!
By: Deepcaster

The Precious Metals Bears' Fear of Fridays
By: Dimitri Speck

 
Search

GoldSeek Web

 
All That Glitters: Tips For Buying Gold Coins


 -- Published: Friday, 21 February 2014 | Print  | Disqus 

By Paul Shaefer

 

Gold coins are all the rage these days. Bullion bars had their day, but investors quickly discovered that those bars were a little difficult to unload in a jam. First of all, bars that are completely sealed must usually be reassayed for purity when they're sold. Some dealers will even require assaying if the bar is vacuum sealed just to make sure that the metal wasn't cut with inferior metals prior to being sold. Coins tend not to have this problem because of the way they're made. But, before you rush out to stock up, make sure you follow these basic tips for buying.

 

Stick To Major Countries

 

It's not that any particular country is bad, if it's not a "major producer." But, consider this: at some point you may want to sell the coin. If you're thinking of putting the gold into an IRA in the U.S., use the American Eagle - the gold purity is guaranteed by the U.S. government, and you won't run into problems with the IRS.

 

South African Krugerrands are also very liquid, and a good buy. The Austrian Philharmonic, the Australian Kangaroo, and the Canadian Maple Leaf are all examples of good coins to get into. Their respective governments guarantee the purity, and they're also well-recognized by most investors.

 

The purity varies on coins depending on the issuing government. For example, the U.S. issues gold coins with a lower purity while Canada issues coins of a higher purity. But don't get too worked up over purity. The reason the U.S. government issues coins with a lower purity is to strengthen the overall "toughness" of the coin. Gold is a soft metal, so by mixing it with stronger metals, the coin becomes more durable. In a sense, you're trading purity for durability.

 

Likewise, higher purity coins are more fragile than lower purity coins, since they contain more of the soft metal. But, regardless of the country you buy them from, as long as you stick to major producers, you're going to be buying a good coin.

 

In fact, most of the Rosland Capital gold reviews you see online will mention all of these as good investments in as far as gold coins are concerned.

 

Compare Prices Amongst Dealers

 

Buying gold is very similar to buying anything else. You don't just walk into any old dealer and buy up his lot. You compare prices. Everyone is out there trying to make a profit. Your job is to pay the lowest price over spot. The dealer's objective is to get you to spend the most amount of money over spot - that way he makes more.

 

Some dealers won't charge a premium though, and these can be one of the best places to do business. But, watch out. Gold is one of those commodities that's been hyped to the sky. There are a lot of scammers out there. Stay away from places offering free storage on allocated gold and gold coins, as well as delayed delivery.

 

Don't Get Into Rarities

 

Collectors love rare coins, but they usually aren't buying gold as an investment. They're buying it because they want a collector's item. Rare coins require a lot more diligence and expertise when you buy them. You really have to be a collector, not an investor.

 

Two coins might look very similar, but they may have very different grades. What's the difference? Several thousand dollars, that's what. You may end up buying something for more than what it's actually worth. Likewise, you could get shorted in the sale.

 

If you are determined to venture into this area, do yourself a favor and hire a professional. Have it professionally graded and get a certificate of authenticity. Yes, it's going to be a big hassle, but this is all part of the process of buying rare coins.

 

Buy Common Sizes, Like 1 Oz

 

Don't go crazy with oddball coin sizes. Most countries sell coins in 1oz denominations. What about the smaller denominations? They're fine, but they also carry a premium. So, you'll end up spending more for your gold than you should - lessening the profit potential on each purchase.

 

Avoid Turkish coins altogether if you're new. These are the only coins on the market that aren't sold in 1oz denominations. Instead, they're sold by gram weight with both the raw or "brute" weight and the net or "pure gold" weight being a driving factor in the price.

 

Turkish coins are used extensively in Turkey as gifts for birthdays, military service, weddings, and pretty much any special occasion. But, while they're very liquid, they're a little more difficult to understand for a new investor.

 

Paul Shaefer has extensive experience in commodities trading. He enjoys sharing his insights into the precious metals industry through blogging.

 


| Digg This Article
 -- Published: Friday, 21 February 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.